Up to 30 A1 Grand Prix franchises are available and are limited to one per country.
The new series, which will launch in Autumn 2005, pits identical cars against each other in a true test of driving skill.
Each three-day racing event will have the same format. Day one will be a free practice, day two a qualifier and day three a 15- to 20-minute sprint race to determine the positions for the longer main event, which will last between 40 and 60 minutes.
Vic Wakeling, the managing director of Sky Sports, said: "We have been sold on the concept of a genuine test of driving skills which, of course, A1 Grand Prix is designed to provide -- and we are delighted to be involved from the beginning.
"It has the added attraction of providing us with more international sport -- all live -- throughout the winter months."
Sheikh Maktoum Hasher Maktoum Al Maktoum, who devised the series, said: "We are pleased and extremely proud to welcome Sky Sports on board as our first broadcast licensee. Sky's innovative coverage and support will make A1 Grand Prix truly 'must see' viewing in the UK."
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